BNY Mellon Chief Economist Richard Hoey mentioned that there are five stages of monetary policy and that the Fed plans a gradual move from that first stage, being aggressively stimulative, to the second stage, stimulative as the economy is in expansion. The other stages are: neutral, restrictive and aggressively restrictive. A persistent multi-year upward drift in interest rates is now likely over a half-decade period.
Federal Housing Finance Agency’s home price index based on purchases of homes with mortgages guaranteed by Fannie Mae and Freddie Mac increased by 7.4% in April 2013 compared to April 2012. The index is 11.7% below its peak value in April 2007.
Average Home Prices are Up
The average home prices increased 11.6% and 12.1% according to the S&P/Case-Shiller 10- and 20-City Composites in the 12 months ending in April 2013. Atlanta posted year-over-year gains of over 20% in April.
Home Union’s cash flow zone, Pittsburgh ranked #1, and Atlanta ranked #4 among the top smartest cities of America, according to a survey conducted by Moveto Blog.
Freddie Mac’s 30-year fixed-rate mortgage averaged 4.46% and, the 15-year FRM this week averaged 3.5% for the week ending June 27, 2013. This represents the largest weekly increase for the 30-year fixed since the week ended April 17, 1987.